Saffron Energy was today celebrating first gas from its Bezzecaa field.
The development achieved an output levels of 30-40,000 scm per day, which equates to between €190,000 and €250,000 per month.
Bezzecca is located east of Milan within the established prolific, gas-producing Po Valley region in northern Italy and operated by Saffron’s subsidiary Northsun Italia SPA (NSI). Gas from Bezzecca 1 is processed at the Vitalba processing plant.
The gas production from Bezzecca combined with Saffron’s production from the Sillaro gas field, which alone is producing 10,000 per day is expected to increase net production from Saffron’s Italian assets more than four times to 40-50,000 scm per day (approximately 250-315 boepd).
Saffron has an offtake agreement with Shell Energy Italia S.r.l. for the gas produced from the company’s fields, which goes directly into the Italian national grid, owned and operated by SNAM Rete Gas S.p.A.
Saffron chief executive Michael Masterman said: “First gas at Bezzecca is a significant financial milestone for Saffron coming within seven weeks of the successful IPO. It has been completed on time and on budget and represents a great technical, financial and management achievement for the Company and shareholders. The commencement of production will boost revenues and operating cash flows consolidating our portfolio and provides further validation of the company’s strategy.”
First gas at Bezzecca comes seven weeks after Saffron’s successful IPO.
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